The new build residential property market has been steadily growing since the property market crash over a decade ago. In the last three years, new build sales figures have risen over 30% to 95,000 units, according to the government’s central statistics unit.
As cranes once again dominate the Spanish skyline, the new build market has been revived thanks to increased demand for brand new key-ready apartments and luxury villas in popular sought after Spanish locations. Before the economic crash, the 12-monthly running total of new build property sales stood at over 320,000. The property boom and the subsequent property crash left surplus new properties flooding the residential market; by 2016 just 73,000 new build properties were sold in Spain. However, with steady growth and demand gradually now outweighing supply – Spain’s new build market has once again become an attractive investment opportunity for property developers.
In 2008, the construction sector accounted for 10.14% of Spanish GDP – totaling €113,190 million. By the time the market bottomed out in 2014, these figures stood at €53,128 million or 5.11% of GDP – nearly half of that reached during the boom. Growth has been slow and steady; in 2018, the construction sector accounted for 5.88% of overall GDP, totaling €71,083 million, reports newspaper Murcia Today.
However, with demand for new housing showing no sign of slowing down and house prices still around 30% below peak values of the 2007 boom, there still seems to be plenty of room for the new build market to grow.